LANDLORDS
RESIDENTIAL
PROPERTY
INSURANCE PRODUCT
DISCLOSURE STATEMENT
AND POLICY WITH
FLOOD COVER
> Landlords Insurance
INSURANCE PRODUCT DISCLOSURE
STATEMENT AND POLICY
WITH FLOOD COVER
LANDLORDS RESIDENTIAL PROPERTY
LANDLORDS
RESIDENTIAL
PROPERTY
Information in this PDS may need to be updated from
time to time where required and permitted by law.
You can obtain a paper copy of any updated information
without charge by calling us on the contact details
provided in this document. If the update is to correct a
misleading or deceptive statement or an omission that is
materially adverse from the point of view of a reasonable
person deciding whether to acquire the Policy, we will
provide you with a new PDS or a Supplementary PDS.
Contents
About This Insurance
1
Landlords Residential Property Insurance
1
Excesses that may apply when you make a claim
2
Bond money we may deduct when you make a claim
2
What This Policy Covers
3
Buildings we will cover
3
What we will pay for buildings
4
Contents we will cover
4
What we will pay for contents
5
Where your contents are covered
6
Accidental damage cover
6
Incident cover provided under specific conditions
6
Additional cover included in this insurance
10
Optional cover you can add to your policy
12
Exclusions To Your Cover
17
Accidental damage cover, additional cover and
optional cover exclusions
17
Liability cover exclusions
18
General exclusions
19
Your Responsibilities To Us
21
Your duty of disclosure
21
Your responsibilities when you are insured with us
22
Your responsibilities when you are making a claim
23
If you do not meet your responsibilities
24
Our Commitment To You
25
The General Insurance Code of Practice 25
Our guarantee
25
How CGU protects your privacy
26
How To Take Out Insurance
27
How to apply for insurance
27
How to renew your insurance
27
How to cancel your policy
28
How to change your policy
28
Your premium
29
How To Make A Claim
30
How we settle a buildings claim
31
How we settle a contents claim
34
How we settle a loss of rent claim
37
How we settle a rent default claim 38
How we settle a theft by a tenant claim 39
Claim payment examples
39
How to resolve a complaint or dispute
41
Financial claims scheme
42
Intermediary remuneration
42
Glossary43
Index46
About This Insurance
Landlords Residential
Property Insurance
Landlords Residential Property Insurance provides cover for
any accidental loss or damage to the buildings or contents
that make up your rental property.
We also provide cover under specific conditions for a range
of incidents and additional covers.
You can choose to take out a buildings policy, a contents
policy, or a combined buildings and contents policy.
You can also add options to your policy for loss of rent,
rent default and theft by a tenant, liability, strata title
mortgagee protection and workers’ compensation.
Your buildings or contents and the options you have chosen
will be covered up to the sum insured, as listed on your
current schedule.
To find out What This Policy Covers, see page 3 P
For Exclusions To This Cover, see pages 17–20 P
1
Excesses that may apply when
you make a claim
An ‘excess‘ is your contribution towards the cost of
a claim. We will tell you if you need to pay an excess
when you make a claim.
The type of excess that applies to your policy and the amount
of that excess will be listed on your schedule. You may need
to pay more than one type of excess when you make a claim.
You will only need to pay this amount once when you make
a claim.
Your excess will be increased by $250 for any loss or damage
that occurs as a result of an earthquake or tsunami.
Your excess will be increased by $400 for any loss or damage
that occurs as a result of:
• deliberate or intentional acts, or vandalism or malicious
acts by your tenants or their visitors
• your tenant leaving your building
• your tenant ceases to pay rent
• your tenant being evicted from your buildings, or
• the theft of any part of your buildings or contents by
your tenants or their visitors.
When a claim is made for what we identify as one or more
separate incidents, you will need to pay any excesses that
apply for each separate incident we have identified.
Bond money we may deduct when
you make a claim
We will reduce the amount we will pay for loss or
damage to your building or contents, rent default
or legal expenses by any bond money that you are
entitled to use to pay for or reduce the cost of any
loss or damage.
2
What This Policy Covers
Buildings we will cover
We will cover residential buildings, their fixtures and
fittings and any structural improvements at your
rental property.
Your buildings include:
• residential buildings, including:
–– any professional offices or surgeries in
those buildings.
• domestic outbuildings
• fixed coverings to walls, floors and ceilings:
–– these do not include fixed carpets, curtains or
internal blinds.
• infrastructure for services, including infrastructure for the
supply of electricity, gas, water, internet and telephone
• items built in, fixed to, or on the buildings
• blinds or awnings on the outside of the buildings
• in built swimming pools and spas
• boat jetties or pontoons that you are legally responsible for
• fences and gates (limits may apply).
Your buildings do not include:
• buildings that a tenant is liable for under the terms
of a written, rental agreement, unless:
–– the building is listed under ‘Your buildings include’
as above.
• building materials
• plants, shrubs, trees or grass
• lawns
• loose or compacted soil, gravel, pebbles, rocks or sand
• dams.
3
What we will pay for buildings
We will cover your buildings up to the sum insured,
as listed on your schedule.
Contents we will cover
We will cover household goods you own or are legally
responsible for that are not fixed or fitted to your
buildings at your rental property.
Your contents include:
• items thinly covered with gold or silver that are not
jewellery or watches
• carpets, curtains or internal blinds
• fixtures and fittings that you have installed if you are the
owner of a strata title unit, unless:
–– the body corporate or similar body has insured them.
• household goods
• furniture and furnishings that are not built in
• portable domestic appliances that are not built in
• swimming pools, saunas and spas that are not built-in
and their accessories
• ‘special contents’, as listed on your schedule.
Your contents do not include:
• unset precious/semi-precious stones
• plants and trees growing outdoors, unless:
–– they are growing in pots or tubs.
• animals, including birds and fish
• jewellery and watches
• items that contain gold or silvers, unless:
–– they are items thinly covered with gold or silver.
• furs
• collections of stamps, money or medals
• sporting equipment
• clothing and personal effects
4
• money and negotiable documents
• battery-powered items as listed below:
–– audio visual equipment
–– camera equipment, including accessories and
unprocessed film
–– electronic diaries
–– GPS
–– mobile or portable phones
–– portable computers.
• pedal cycles, motorcycles, mini-bikes, caravans, trailers,
aircraft, watercraft or motor vehicles, unless:
–– they are ride-on mowers.
• building materials.
What we will pay for contents
There are set maximum amounts that we will pay
when you make a claim. These amounts are listed
below and are included in your contents sum insured.
The most we will pay
Contents
up to the contents sum insured
as listed on your schedule
(inclusive of GST) in total
Any content item, pair, set,
collection or system of
contents items
$20,000 (inclusive of GST)
per item, pair, set, collection
or system
Nominating the amount we will pay for contents
When you take out a contents policy, you must nominate the
replacement value of your contents at today’s prices. This is
called your ‘sum insured’ and is listed on your schedule.
Increasing the amount we will pay for contents
You can increase the maximum amount we will pay for any
content item, pair, set, collection or system by nominating
an amount that is higher than $20,000. Your contents will
be listed on your schedule as ‘special contents’.
5
Where your contents are covered
We will cover your contents at your rental property
for loss or damage as a result of an incident we
have agreed to cover.
Accidental damage cover
We will cover your buildings or contents for any
accidental loss or damage.
There are also a number of incidents we will cover
under specific conditions – these are listed on the
following pages.
If you make a claim, you will need to pay any
excesses that apply – you will only need to pay
this amount once.
Any cover we provide is subject to exclusions.
For Exclusions To This Cover, see pages 17–20 P
Incident cover provided under
specific conditions
Burning out of an electric motor
We will cover the cost to repair or replace your
electric motor if it burns out or fuses.
We will only do this if your electric motor is:
• 15 years old or less, and
• no bigger than 3.7 kilowatts (5 hp).
6
Fire or explosion
We will cover your buildings or contents for loss
or damage as a result of a fire or an explosion.
We will not cover loss or damage caused by a bushfire
or grassfire within 48 hours of the start date of your
policy, unless:
• you took out your insurance with us immediately after
another insurance policy covering the same buildings
or contents expired, without a break in cover
• you took out your insurance with us immediately after
the risk passed to you as purchaser of your buildings
• you took out your insurance with us immediately after
you signed a lease contract for your buildings.
Landslide or subsidence
We will cover your buildings or contents for loss or
damage as a result of a landslide or subsidence.
We will only do this if the loss or damage occurs within
72 hours of:
• an earthquake or explosion
• a storm or flood, including rainwater or wind, or
• liquid escaping from a fixed pipe, or an object attached
to a pipe, fixed gutter, fixed tank or a drain.
Loss or damage by a tenant or their visitors
We will cover your buildings or contents for loss or
damage caused by a tenant or their visitors, or their
visitors pets.
We will only do this if the loss or damage occurs as a result of:
• accidental breakage of any fixed glass in your
buildings, including:
–– any window tinting or shatter proofing material
attached to the glass
–– fixed shower bases, basins, sinks, spas, baths
and toilets.
7
• fire or explosion, as described on the previous page
• impact by a vehicle
• water or liquid that escapes from:
–– a fixed pipe or an object attached to a pipe, fixed
gutter, fixed tank or a drain
–– a bath, basin, sauna, spa, shower base or shower
wall, sink, toilet or tiled floor that has drainage holes
–– a washing machine or dishwasher
–– an aquarium
–– a waterbed.
• a deliberate or intentional act, vandalism or a malicious
act, unless it is a result of:
–– theft
–– tenant neglect, carelessness, poor housekeeping
or unhygienic living habits
–– damage occurring during maintenance or repair
operations carried out by the tenants or anyone
acting on their behalf
–– damage caused by pets belonging to tenants
or their visitors.
Storm, flood, rainwater or wind
We will cover your buildings or contents for loss or
damage as a result of storm, flood, rainwater or wind.
We will not cover loss or damage as a result of flood within
14 days (336 hours) of the start date of this policy, unless:
• you took out your insurance with us immediately after
another insurance policy covering flood and insuring the
same building or contents expired, without a break
in cover.
We will not cover loss or damage caused by a named cyclone
within 48 hours of the start date of your policy, unless:
• you took out your insurance with us immediately after
another insurance policy covering the same buildings
or contents expired, without a break in cover
• you took out your insurance with us immediately after
the risk passed to you as purchaser of your buildings
• you took out your insurance with us immediately after
you signed a lease contract for your buildings.
8
We will not cover:
• swimming pool covers, including:
–– solar covers and plastic liners.
• water entering your buildings:
–– through an opening made for any building,
renovation or repair work
–– because of a structural defect, faulty design or faulty
workmanship when your buildings were constructed.
• free-standing fences made of corrugated fibrous
material that do not have a supporting frame, unless:
–– they have been installed and constructed according
to the manufacturer’s specifications.
• free-standing gates, fences or walls that are made of
timber and are more than 15 years old
• jetties, wharves, bridges or pontoons for damage
by flood.
Theft or attempted theft
We will cover your buildings or contents for loss or
damage as a result of theft or attempted theft.
We will not cover your buildings or contents for loss or
damage as a result of theft by a tenant or their visitors.
The theft or attempted theft must be reported to the Police.
Water or liquid damage
We will cover your buildings or contents for loss or
damage caused by water or liquid. We will also cover
the cost of finding where the water or liquid escaped
from, including the cost of repairing any damage that
occurs while looking for the cause.
We will not cover your buildings or contents for loss or
damage caused by:
• landslide or subsidence, unless:
–– we agree to cover the incident as described under
‘Landslide or subsidence’.
9
• water entering your buildings:
–– through an opening made for any building,
renovation or repair work
–– because of a structural defect, faulty design or faulty
workmanship when your buildings were
constructed.
• or the cost of fixing or finding leaks that have not caused
loss or damage to your buildings or contents.
We will cover the cost of repairing the item that caused the
escape of water or liquid.
For Landslide or subsidence, see page 7 
Additional cover included in
this insurance
Your insurance includes a range of covers we refer
to as ‘additional cover’. These covers are listed on
the following pages. The additional cover we provide
depends on whether you have a buildings policy,
contents policy or a combined buildings and
contents policy.
The amount we will pay for these covers is in addition
to the sum insured, as listed on your schedule.
If you make a claim for an additional cover, you will
not need to pay an excess.
Any cover we provide is subject to exclusions.
For Exclusions To This Cover, see pages 17–20 P
Debris removal and demolishing
BUILDINGS
CONTENTS
We will cover the reasonable costs to demolish and
remove any debris that results from loss or damage
to your buildings or contents, up to 10 per cent of
your buildings or contents sum insured.
The debris must occur as a result of an incident we have
agreed to cover.
10
Mortgagee discharge costs
BUILDINGS
If you make a claim for the total loss of your buildings,
we will cover any legal costs associated with the
discharge of any mortgage you have left owing.
The total loss must occur as a result of an incident we have
agreed to cover.
Rebuilding fees
BUILDINGS
If your buildings suffer loss or damage, and need to be
rebuilt as a result, we will cover the costs of employing
an architect or surveyor, and also pay any legal fees
that arise from the rebuilding, up to 10 per cent of your
buildings sum insured.
The rebuilding must occur as a result of an incident we
have agreed to cover.
Sale of your rental property
BUILDINGS
If you have entered into a contract to sell your rental
property, we will extend your buildings cover to the
purchaser until:
• the contract settlement date
• the purchaser insures the rental property, or
• the purchaser becomes liable for damage to the
rental property,
whichever happens first.
This cover will stop immediately if:
• the sale contract is terminated, or
• your buildings insurance comes to an end.
Sum insured
BUILDINGS
CONTENTS
If we agree to pay you for a loss to your buildings or
contents we will increase your sum insured for buildings
or contents by the amount the Consumer Price Index
(all groups) has increased since you took out your policy.
11
However, we will not increase your sum insured for
special contents.
You will be fully insured again for your buildings or contents
for the amounts shown on your schedule, unless:
• your claim is for a total loss and we pay you the sum
insured, then your policy comes to an end, subject to
any continuing liability cover and no refund of your
premium is due.
Optional cover you can add to
your policy
You can broaden the scope of your cover by adding
any of the following options. You will need to apply for
this cover and pay an additional premium. Any options
that we agree to add to your policy will be listed on
your current schedule.
Any cover we provide is subject to exclusions.
For Exclusions To This Cover, see pages 17–20 P
Liability cover
With this option, we will cover your legal liability as
a result of any incident listed below that causes loss or
damage to someone else’s property, or death or bodily
injury to other people, during your period of insurance.
The most we will pay for all liability claims under this policy
is the sum insured as listed on your schedule (including GST).
This amount includes any legal costs that must be paid to
defend the claim and any costs awarded against you.
If you choose this option, it will be listed on your schedule as
‘Liability cover’.
If you have insured your buildings, including strata title or a
similar scheme, we will cover you for the amount you have
to pay as owner or occupier of the buildings.
If your buildings are a total loss, we will continue liability cover
for any amount you have to pay as owner or occupier of the
buildings for up to six months from the date your buildings
are destroyed.
12
This cover will stop immediately if:
• construction commences at the home
• you sell the land, or
• you take out a new buildings insurance policy for
the home.
If you have insured your contents and you own part of
the building that has been subdivided, we will cover you
for the amount you have to pay as owner of your contents,
or occupier of your part of the building.
If you have insured your contents we will cover you for
the amount you have to pay because of any defect in
your contents.
If you provide a car park for your tenant or their visitors to use,
we will cover you for the amount you have to pay for damage
to property while it is in the car park.
Loss of rent
With this option, if your buildings or sections of your
buildings suffer loss or damage and are uninhabitable
as a result, we will cover any loss of rent equal to the
weekly amount as stated on your rental agreement
or periodic tenancy agreement for up to 12 months.
The most we will pay is up to the sum insured, as
listed on your schedule.
If you choose this option it will be listed on your schedule
as ‘Loss of rent’.
This cover applies when:
• loss or damage to your buildings or contents occurs
as a result of an incident as listed in this PDS
• access to your rental property is prevented due to
loss or damage to other property located near your
rental property.
We will only cover loss of rent while your rental property
is uninhabitable.
We will also provide cover for up to two weeks rent, up to
$1000 (inclusive of GST) after:
• a death of a sole tenant that occurs before the end of
the tenancy period of your rental agreement or during
a periodic tenancy agreement.
Cover will start from the date of death of the sole tenant.
13
We will not pay if:
• the sole tenant had given you or your agent notice
in accordance with the rental agreement or periodic
tenancy agreement prior to their death
• your rental agreement or periodic tenancy agreement
is legally terminated by a Residential Tenancies Tribunal
or another relevant authority on the grounds of hardship
on the part of the tenant.
Cover will start from when the termination order issued by
the Residential Tenancies Tribunal or other relevant
authority takes effect.
This cover will stop immediately if your rental property
is re-tenanted.
An excess may apply to this option.
This option is available for buildings or contents policies.
Rent default and theft by a tenant
With this option, we will cover:
• rent default and theft by a tenant
• legal costs you incur as a result of rent default or
theft by a tenant.
If you choose this option, it will be listed on your schedule
as ‘Rent default and theft by a tenant’.
We will only cover rent default for the weekly amount your
rental property is leased for, up to $5,000 (inclusive of GST),
less any excess or bond money that applies:
• if your tenant leaves your rental property before the
end of the tenancy period of your rental agreement or
periodic tenancy agreement, without giving you or your
agent notice
• if your tenant is legally evicted from your rental property
• if your tenant stops paying rent owed to you or your agent.
We will only pay a rent default claim:
• if the tenant breaches your rental agreement or periodic
tenancy agreement, and
• you have taken all reasonable steps legally available
to you under the Residential Tenancies Act, or other
relevant state or territory legislation, to remedy
non- payment and evict the tenant.
14
Your cover for rent default ceases if the rental agreement
could have been legally terminated by you.
Cover for rent default will not apply if the rent is in arrears at
the commencement date of this insurance. This cover will
not commence until all rent arrears have been paid, and the
tenant has paid a minimum of four consecutive weeks of the
agreed rent in accordance with the rental agreement.
When a rental agreement defaults to a ‘periodic tenancy
agreement’, we will only pay up to two weeks rent after a
tenant vacates the building without notice.
When you or your agent issues a notice to leave to a
tenant, we will only pay up to two weeks rent after the
tenant vacates the building.
We will not pay a claim if your tenant leaves the building
with, or without notice, and you have failed to rectify a
‘Notice of Remedy’ breach issued by the tenant to you.
This cover will stop immediately:
• if your rental property is re-tenanted, or
• when the term of your rental agreement ends.
We will only cover theft by a tenant or their visitors of:
• any part of your buildings, up to the buildings sum
insured, as listed on your schedule, after deducting any
excess that applies, if you have insured your buildings
• your contents, up to the contents sum insured, as listed
on your schedule, after deducting any excess that applies,
if you have insured your contents.
If we have agreed to pay a rent default or theft by a tenant
claim we will also cover legal costs as a result of rent default
or theft by a tenant, up to $1,000 (inclusive of GST) that you
incur to:
• legally evict a tenant
• recover amounts owed to you by a tenant, unless the
legal costs are solely to recover excesses that apply to
a claim under this policy, or
• recover amounts for items stolen from your rental
property by a tenant or their visitors.
We will only pay your legal costs if we agree to pay them
and before they are incurred.
An excess applies to this option.
15
Strata Title Mortgagee Protection
With this option, we will cover the amount you
must pay to settle your mortgage following loss or
damage to buildings that you own under a strata title
or similar plan.
If you choose this option the individual amount you
nominate and any excesses that apply will be listed on your
schedule under ‘Strata Title Mortgagee Protection’.
We will pay up to the amount you owe on your mortgage,
but no more than the sum insured, as listed on your schedule.
We will pay this amount to your mortgagee when you are
required to pay your mortgagee in full, however:
• the loss or damage must occur as a result of an incident
we have agreed to cover.
We will only pay this when the body corporate:
• has not insured the buildings, or
• has not insured the buildings for loss or damage you can
claim for under this policy.
This option is available as a stand-alone policy.
An excess may apply to this option.
Workers’ Compensation
If you employ a person to do work around your rental
property such as cleaning or gardening, you can
add cover for the amount you are liable for if they are
injured while working for you, subject to the relevant
legislation in your state or territory.
If you choose this option, it will be listed on your schedule
as ‘Workers’ Compensation’.
You will need to check with your local Workers’
Compensation Authority as this cover may be compulsory.
This cover only applies to employees doing work in connection
with you as owner, operator or manager of the rental property.
We will not cover any person that is working for you in your
business, profession, trade or occupation.
An excess may apply to this option.
To find out who the insurer is for this option, see inside back cover P
16
Exclusions To Your Cover
Any cover we provide is subject to the following
exclusions.
Accidental damage cover, additional
cover and optional cover exclusions
We will not cover any loss or damage as a result of,
or caused by:
• settling, shrinkage or any movement of earth
• erosion, rust, corrosion, gradual deterioration,
depreciation, wear or tear
• rats, mice or insects
• roots from trees, plants, shrubs or grass
• any process of cleaning involving the use of chemicals
other than domestic household chemicals
• a defect in an item, structural defects, or faulty
workmanship or design
• breakage of mirrors, glassware, crystal, crockery or china
while they are being used, cleaned or carried by hand
• mechanical or electrical breakdown other than an
electric motor burning out, unless:
–– the breakdown results in damage to your buildings
or contents.
• a tenant or their visitors or their visitors pets, unless:
–– we agree to cover the incident as described under
‘Loss or damage by a tenant or their visitors’.
• landslide or subsidence, unless:
–– we agree to cover the incident as described under
‘Landslide or subsidence’.
• water entering your buildings:
–– through an opening made for any building,
renovation or repair work
–– because of a structural defect, faulty design or faulty
workmanship when your buildings were constructed.
• a tenant or their visitors or their visitors pets, scratching,
denting, chipping, rubbing, scuffing or chafing any surface.
17
Liability cover exclusions
We will not cover any:
• personal injury to you, or any member of your family
who normally lives with you, or anyone else who
normally lives with you
• personal injury to any person you employ where that
injury arises from their employment with you
• loss or damage to property that belongs to you, or is
under your control, or any member of your family who
normally lives, with you, or anyone else that normally
lives with you
• loss or damage to property that belongs to any person
you employ where that loss or damage arises from their
employment with you
• penalties, fines or awards of aggravated, exemplary or
punitive damages made against you.
We will not cover any liability as a result of, or arising
from:
• any alterations, repairs, renovations or additions to your
buildings that cost more than $75,000 (inclusive of GST)
• any alterations, servicing, repairing or any additions to
lifts, escalators or hoists, including:
–– anything that is part of a lift, escalator or hoist.
• any disease that is transmitted by you, or any member
of your family who normally lives with you
• any business, profession, trade or occupation carried
out by you, unless:
–– the liability is as a result of, or arising from, you
managing the buildings and their surrounds.
• any agreement or contract you enter into, however:
–– if you would have been liable without the agreement
or contract, we will pay for that liability.
We will not cover any liability as a result of, or arising
from:
• the use, removal of, or exposure to any asbestos product
or products containing asbestos
• the use of a motor vehicle, motorcycle, mini-bike, caravan,
trailer, aircraft or watercraft, however:
–– we will cover liability that arises from ride-on mowers.
18
• servicing, repairing or maintaining any vehicle
• the erection or demolition of buildings
• vibration or interference with the support of the land,
buildings or other property
• the discharge, release or escape of any pollutants
• the removal, neutralising or cleaning up of pollutants
• any act of libel or slander.
General exclusions
We will not cover any loss or damage, or liability
as a result of, or arising from:
• any incident that does not occur within your period
of insurance
• landslide or subsidence, unless:
–– we agree to cover the incident as described under
‘Landslide or subsidence’.
• war or warlike activity, however:
–– war does not need to be declared.
• hostilities, rebellion, insurrection or revolution
• contamination by chemical and/or biological agents,
which results from an act of terrorism
• lawful destruction or confiscation of your property
• anything nuclear or radioactive
• mildew, atmospheric or climatic conditions
• damage to a heating element, however:
–– we will pay for any loss or damage as a result of
damage to a heating element.
• failure or inability of any item, equipment or computer
software to recognise correctly, to interpret correctly
or to process correctly any date, or to function correctly
beyond any time when that item, equipment or
computer software has not recognised, interpreted
or processed correctly any date, unless:
–– it results in loss or damage to your buildings or
contents that is covered under this policy. This does
not include resultant loss or damage to any frozen
food, computer equipment or computer software.
19
We will not cover any loss or damage, or liability
as a result of, or arising from:
• deliberate or intentional acts by you, or anyone acting
for you, to cause loss, damage or injury
• storm surge
• erosion, the action of the sea, tidal wave or high water,
unless:
–– the loss or damage is the result of a tsunami.
20
Your Responsibilities To Us
Your duty of disclosure
When you take out, renew, or change or vary a
policy, or when you make a claim, you have a duty
to answer our questions truthfully and provide us
with any information that could affect our decision to
insure you, or the terms of your policy. This is called
your ‘duty of disclosure’.
What you must tell us when you apply to take
out this policy
When applying to take out insurance we will ask you certain
questions. When answering these questions, you must be
honest, and you have a duty under the Insurance Contracts
Act 1984 to tell us anything:
• known to you, and
• which a reasonable person in the circumstances
would include in answer to any question.
We will use your answers to help us decide whether to insure
you and anyone else under this policy, and on what terms.
Who you are answering the questions for
It is important that you understand you are answering the
questions in this way on behalf of yourself and anyone else
that you want to be covered by the policy.
If you do not answer our questions in this way
If you do not answer our questions in this way, we may reduce
or refuse to pay a claim, or cancel the policy, or do both. If you
answer our questions fraudulently, we may refuse to pay a
claim and treat the policy as never being in place.
Renewal, variation, reinstatement or extension
of your policy
When your policy is renewed, varied, reinstated or extended
you have a duty, under the Insurance Contracts Act 1984,
to tell us anything that you:
• know, or
21
• could reasonably be expected to know, and
• is relevant to our decision whether to accept the risk
of insurance and, if so, on what terms.
Your duty does not require disclosure of anything that:
• diminishes the risk to be undertaken by us
• is of common knowledge
• we know or, in the ordinary course of business,
ought to know, or
• is a matter that we indicate your duty has been
waived by us.
If you do not comply with your duty of disclosure
If you fail to comply with your duty of disclosure, we may be
entitled to reduce our liability under the policy in respect of a
claim, or we may cancel the policy, or do both.
If your non-disclosure is fraudulent, we may also have the
option of avoiding the contract from its beginning.
Your responsibilities when you are
insured with us
In addition to your duty of disclosure, there are other
responsibilities that you must meet when you are
insured with us.
You must tell us if:
• your buildings will be unoccupied for a continuous
period of 60 days or more
• any changes have been made to:
–– the address or location where your buildings
or contents are insured
–– the use of your buildings
–– your buildings due to renovation, extensions
or demolition
–– the people who are insured under this policy
–– the sums insured for your buildings or contents.
• any people who are insured under the policy have:
–– been convicted of any criminal offence
22
–– made a claim that is not true under this policy
or another insurance policy.
• there are any changes in circumstances during the
period of insurance.
If you tell us about any of these things, we may charge
an additional premium, change the cover of your policy,
impose special conditions, or cancel your policy.
In addition, you must also:
• be truthful and frank in any statement you make in
connection with your policy
• pay your premium, including paying instalments regularly
• take reasonable precautions to avoid a claim being made
• obey all laws and make sure anyone acting on your
behalf obeys all laws
• follow the conditions of this policy
• not make a fraudulent claim under this insurance policy
or any other policy.
Your responsibilities when you are
making a claim
When you make a claim you must meet a number
of responsibilities.
You must:
• be truthful and frank in any statement you make in
connection with a claim
• take safe and reasonable steps to prevent any further
loss, damage or liability occurring
• inform the Police as soon as possible if your buildings or
contents suffer loss or damage as a result of theft or
attempted theft, vandalism or a malicious act
• keep all damaged buildings or contents so we can inspect
them if required
• give us any information or assistance we require to
investigate and process your claim
• not pay or promise to pay for a claim, or admit responsibility
for a claim
• not repair or replace any damaged buildings or contents
without our consent.
23
In addition, you also give us your rights to claim
from anyone else:
• if you have a right to claim from anyone else for an
incident covered by us, you give us your rights to
make that claim, to conduct, defend or settle any
legal action and to act in your name – you must not
do anything which prevents us from doing this and you
must give us all the information and cooperation that
we require.
If you do not meet your
responsibilities
If you do not meet your responsibilities, we may refuse
or reduce a claim, cancel your policy, or do both. If we
cancel your policy, we will advise you in writing.
24
Our Commitment To You
The General Insurance Code
of Practice
The purpose of the Code is to raise the standards of
practice and service in the general insurance industry.
The objectives of the Code are:
• to promote better, more informed relations between
insurers and their customers
• to improve consumer confidence in the general
insurance industry
• to provide better mechanisms for the resolution of
complaints and disputes between insurers and their
customers, and
• to commit insurers and the professionals they rely upon
to higher standards of customer service.
Our commitment to you
We have adopted and support the Code and are committed
to complying with it.
Please contact us if you would like more information about
the Code.
See back cover for contact details P
Our guarantee
Our guarantee assures you of quality insurance and
service at all times.
Fair dealing guarantee
We will meet any claims covered by your policy fairly
and promptly.
Money back guarantee
If you change your mind, we provide a cooling-off period
which lets you cancel your policy within 21 days with a full
refund of your premium. However, your cooling-off period
no longer applies if you make a claim within this time.
25
Service guarantee
We will provide you with the highest standard of service.
How CGU protects your privacy
We use information provided by our customers to allow us
to offer our products and services. This means we may need
to collect your personal information, and sometimes sensitive
information about you as well (for example, health information
for travel insurance). We will collect this information directly
from you where possible, but there may be occasions when
we collect this information from someone else.
CGU will only use your information for the purposes for which
it was collected, other related purposes and as permitted
or required by law. You may choose not to give us your
information, but this may affect our ability to provide you
with insurance cover.
We may share this information with companies within our
group, government and law enforcement bodies if required
by law and others who provide services to us or on our
behalf, some of which may be located outside of Australia.
For more details on how we collect, store, use and disclose
your information, please read our Privacy Policy located
at www.cgu.com.au/privacy. Alternatively, contact us at
privacy@cgu.com.au or 13 15 32 and we will send you
a copy. We recommend that you obtain a copy of this
policy and read it carefully.
By applying for, using or renewing any of our products or
services, or providing us with your information, you agree
to this information being collected, held, used and disclosed
as set out in this policy.
Our Privacy Policy also contains information about how you
can access and seek correction of your information, complain
about a breach of the privacy law, and how we will deal with
your complaint.
26
How To Take Out
Insurance
How to apply for insurance
1. If you are taking out a policy with us for
the first time, contact us or your insurance
adviser, or apply on line at www.cgu.com.au
You can also send correspondence to GPO
Box 9902, in your capital city
If we agree to insure you, we will send you a schedule
setting out the details of your policy.
2. Pay your premium
See Your premium, page 29 P
See Your responsibilities when you are insured with us, page
22–23 
How to renew your insurance
1. If you already have a policy with us, we may
send you an offer to renew your insurance
before your current policy expires
We will send you an updated schedule and quote
a premium based on the information contained in
your current policy.
If you have any questions, contact us or your insurance adviser.
2. Review the proposed policy and premium
we offer
If you paid your last premium by instalments, we will
continue to deduct payments from your nominated
account. If you paid your last premium in one lump
sum, we must receive your payment by the due date,
otherwise your buildings or contents will not be insured.
3. Pay your premium
See Your premium, page 29 P
27
How to cancel your policy
1. If you want to cancel your policy, contact us
or your insurance adviser
We may need your request in writing. If you cancel your
policy before it ends, we will refund an amount for the
unused premium.
How to change your policy
1. Contact us or your insurance adviser to
change or vary your policy
You will be sent an endorsement schedule that includes
any changes or variations you have requested and we
have agreed to, and any special conditions we may have
applied to that agreement.
2. Check the changes
3. Pay your premium if it has increased
We will tell you if your premium has increased. If you
pay your premium by instalments, we will adjust your
instalments and continue to deduct the new amount
from your nominated account. If you pay your premium
in one lump sum, we must receive your additional
payment within one month.
28
Your premium
1. How we calculate your premium
We will base your premium on the type of cover you have
chosen, including any options that you have added, your
sum insured, the excess, the type, location, construction
and age of your buildings or contents, the level of security
you have, your previous insurance and claims history,
and any special conditions that we have applied.
Premiums are also subject to Commonwealth and state
taxes and/or charges. These include the Goods and
Services Tax and stamp duty.
Your premium, including any taxes and charges, will be
listed on your schedule.
2. How to pay your premium
You can pay your premium in one lump sum, or
by instalments.
If you pay your premium in one lump sum, you can pay
by cash, cheque or credit card.
If you pay your premium by instalments, you can pay by
credit card or by direct debit from a financial institution.
We may cancel your policy if:
• you do not pay your premium
• your cheque or credit card is dishonoured by your
financial institution, or
• you pay your premium by instalments and you
are more than one month behind.
We may refuse to pay a claim if:
• you pay by instalments and at least one instalment
of the premium has remained unpaid for a period of
at least 14 days.
3. Interest on unallocated premium
If we are unable to issue your insurance when we receive
your application, we are required to hold your Premium in
a trust account on your behalf until your insurance can
be issued. We will retain any interest payable by our bank
to meet, among other things, bank fees and other bank
costs we incur in operating the account.
29
How To Make A Claim
1. Make sure you have all the information
you need to support your claim
We will need:
• contact details of any other people involved in the
incident, including their name, current residential
address and who they are insured with
• any letters, notices or court documents about the
incident within 72 hours of receiving them
• the incident report number for any claims in relation to
theft or attempted theft, vandalism or a malicious act:
–– the Police will provide you with this number
when you report the incident to them.
2. Contact us or your insurance adviser to
make a claim
You need to make your claim as soon as possible.
Any delays may:
• reduce the amount that we pay, or
• prevent us from paying a claim.
We will give you immediate advice and assistance with
your claim, 24 hours a day, 7 days a week.
We will ask you a range of questions to help us assess
your claim. We may:
• ask you to provide us with proof of ownership
• need to inspect your buildings or contents
• need quotations from a repairer.
3. If you need emergency repairs
If you need to make emergency repairs, we will arrange
assistance through our preferred repairers and suppliers.
To find out how we settle a claim, see next page P
30
How we settle a buildings claim
1. We will decide how we will settle your claim
If your buildings suffer loss or damage, we will
decide whether to:
• repair
• rebuild, or
• pay you the cost to repair or rebuild that part of
your buildings that suffered loss or damage.
If we do, we will:
• pay you up to the buildings sum insured, as listed
on your schedule
• only repair, rebuild or pay you for the part or parts of
the building that actually sustained loss or damage,
including damaged portions of fixed coverings to
walls, floors and ceilings only in the room, hall or
passage where the damage occurred
• try to match any material used to repair your
buildings with the original materials or nearest
equivalent available to the original materials
• repair or pay you the costs to repair your buildings
if the damage was caused by water or liquid that
escaped from a bath, basin, sauna, spa, shower
base or shower wall, however:
–– we will not pay the costs to repair or replace
the bath, basin, sauna, spa, shower base or
shower wall.
When we settle your claim, the law that will apply is the
law of the state or territory where the loss, damage or
liability occurred.
2. You must pay any excess that applies
If you make a claim, you will need to pay any excesses
that apply.
If you are claiming for any loss or damage that occurs
as a result of:
• a deliberate or intentional act, or vandalism or a
malicious act by a tenant or their visitors, you will
need to pay an additional excess of $400
• an earthquake or tsunami, you will need to pay
an additional excess of $250.
31
The loss or damage must occur within 72 hours of
the earthquake occurring.
You must pay any excess to us, or to the builder:
• we will tell you who to pay the excess to.
If we choose to pay you, we may deduct the amount
of excess from the amount we settle your claim for.
When a claim is made for what we identify as one or
more separate incidents, you will need to pay any
excesses that apply for each separate incident we
have identified.
For excesses that may apply, see your current schedule
3. If you are entitled to use bond money
We will reduce the amount we will pay for loss or
damage to your buildings or contents by any bond
money that you are entitled to use to pay for or reduce
the cost of any loss or damage.
4. If we decide to repair or rebuild your
buildings and your current schedule shows
‘including replacement benefit’
We will repair or rebuild the part of your buildings that
suffered the loss or damage to a condition as close as
possible to when new, but not better.
If we rebuild your buildings, we will also pay the amount
that you need to pay to ensure your buildings comply with
government legislation and local authority bylaws, unless:
• you were required to pay these amounts before the
loss or damage occurred, and you did not do so,
however:
–– if the cost of repairing the damage is less than
50 per cent of the cost of rebuilding your
buildings, we will only pay for the additional
costs for the damaged portions.
If the rebuilding or repair is limited by government
legislation or local authority bylaws that reduce the
floor area of your buildings, we will:
• pay the actual cost of rebuilding or repairing the
reduced floor area of your buildings
• pay the difference between the actual costs of
rebuilding or repairing the reduced floor area of
your buildings and the estimated costs of rebuilding
or repairing your buildings had the limit not applied.
32
• pay you what the value of the land was just before
the loss or damage occurred, after deducting the
amount we estimate as the value of your land after
the loss or damage occurred and any amount that
you receive as compensation for the loss, however:
–– the most we will pay is the unused portion
of your sum insured.
You can choose your own repairer or tradesman
or we can help you find one.
If we authorise repairs, we will deal directly with the
repairer or tradesman about payment.
5. If we decide to repair or rebuild your
buildings and your current schedule does
not show ‘including replacement benefit’
We will:
• repair your buildings to the condition they were in
just before the loss or damage occurred
• pay you the cost of repairing your buildings to the
condition they were in just before the loss or
damage occurred, or
• pay you what the value of the land and your buildings
was just before the loss or damage occurred, after
deducting the amount we estimate as the value of your
land and buildings after the loss or damage occurred.
6. After we agree to settle a claim
The repair or rebuilding work on your buildings must
start within six months of the loss or damage occurring,
otherwise you will have to pay any increase in costs
caused by the delay.
If the work does not commence in this period, we will do
one of the following:
• repair your buildings to the condition they were in
just before the loss or damage occurred
• pay you the cost of repairing your buildings to the
condition they were in just before the loss or
damage occurred, or
• pay you what the value of the land and your
buildings was just before the loss or damage
occurred, after deducting the amount we estimate
as the value of your land and buildings after the
loss or damage occurred.
33
7. If your building is a total loss
We will pay you the sum insured for your buildings,
as listed on your schedule, after deducting:
• any excess
• any unpaid premium, and
• any input tax credit you would have been entitled to
under A New Tax System (Goods and Services Tax)
Act 1999 if you had paid to repair or rebuild
your buildings.
If we pay you the sum insured, then your policy comes
to an end, subject to any continuing liability cover and
no refund of your premium is due.
How we settle a contents claim
1. We will decide how we will settle your claim
If your contents suffer loss or damage, we will
decide whether to:
• repair an item
• replace an item, or
• pay you the cost to repair or replace the item.
If we do we will pay up to:
• the contents sum insured, as listed on your
schedule, and
• the maximum amount per item, set, pair, collection
or system.
If the item is part of a pair, set, collection or system,
we will only cover the value of the item itself, however:
• the most we will pay is the value of the item as
a proportion of the combined pair, set, collection
or system.
To find out what we will pay, see page 5 
34
2. You must pay any excess that applies
If you make a claim, you will need to pay any excesses
that apply.
If you are claiming for any loss or damage that occurs
as a result of:
• a deliberate or intentional act, or vandalism or a
malicious act by a tenant or their visitors, you will
need to pay an additional excess of $400
• an earthquake or tsunami, you will need to pay
an additional excess of $250.
The loss or damage must occur within 72 hours
of the earthquake occurring.
You must pay any excess to us, or to the supplier or
repairer – we will tell you who to pay the excess to.
If we choose to pay you, we may deduct the amount
of excess from the amount we settle your claim for.
When a claim is made for what we identify as one or more
separate incidents, you will need to pay any excesses that
apply for each separate incident we have identified.
For the type and amount of excess that may apply,
see your current schedule
3. If you are entitled to use bond money
We will reduce the amount we will pay for loss or
damage to your buildings or contents by any bond
money that you are entitled to use to pay for or reduce
the cost of any loss or damage.
4. If we decide to repair your contents
When damage or loss occurs to:
• any item that consists solely of fabric
• carpet which is 10 years old or more, or
• any other contents item that is 15 years old or more,
we will repair the damaged item to a condition it was in
before the loss or damage occurred.
If loss or damage occurs to any other contents item, we will
repair the damaged item to the condition it was when new.
If the item we are repairing is part of a pair, set,
collection or system, we will only cover the part of the
pair, set, collection or system that was damaged.
35
5. If we decide to replace your contents
When damage or loss occurs to:
• any item that consists solely of fabric
• carpet which is 10 years old or more, or
• any other contents item that is 15 years old or more
we will replace the item with an item of the same
condition. The replacement item will not be better than
the item replaced.
When loss or damage occurs to any other contents
item, we will replace the item with the nearest equivalent
new item.
We will only replace wall, floor and ceiling coverings,
including carpets, internal blinds and curtains, in the room,
hall or passage where the loss or damage occurred.
We will not pay to re-carpet adjoining rooms, or your
entire rental property.
We will only pay the cost of replacing the item even
though the pair, set, collection or system to which it
belongs is less valuable because it is incomplete.
If the item we are replacing is part of a pair, set,
collection or system, we will only cover the value of
the item itself, however:
• the most we will pay is the value of the item as
a proportion of the combined pair, set, collection
or system.
Any salvage becomes our property.
6. If we decide to pay you the cost to repair
or replace your contents
When damage or loss occurs to:
• any item that consists solely of fabric
• carpet which is 10 years old or more, or
• any other contents item that is 15 years old or more,
our payment will be reduced to allow for wear, tear and
depreciation.
When loss or damage occurs to any other contents item,
we will pay you the cost to repair or replace it.
36
We will pay you the fair and reasonable costs to repair or
replace your contents as described in Steps 1, 3 and 4,
after deducting:
• any excess, and
• any input tax credit you would have been entitled to
under A New Tax System (Goods and Services Tax)
Act 1999 if you had paid to repair or replace your contents.
We will only pay the cost of replacing an item that is part
of a pair, set, collection or system, even though the pair,
set, collection or system to which it belongs is less
valuable because it is incomplete.
Any salvage becomes our property.
How we settle a loss of rent claim
1. If we decide to pay your loss of rent claim
We will pay you loss of rent equal to the weekly amount
as stated on your rental agreement or periodic tenancy
agreement for up to 12 months.
The most we will pay is up to the sum insured as listed
on your schedule.
2. If we decide to pay your death of a sole
tenant or tenant hardship claim
We will pay you up to two weeks rent.
The most we will pay is $1,000 (inclusive of GST).
3. You must pay any excess that applies.
If you make a claim, you will need to pay any excess
that applies. The amount of your excess is shown on
your schedule.
When a claim is made for what we identify as one or
more separate incidents, you will need to pay any excesses
that apply for each separate incident we have identified.
37
How we settle a rent default claim
1. If we decide to pay your rent default claim
We will pay you the rent default up to $5,000 (inclusive
of GST). We will calculate the rent default based on:
• the weekly amount your rental property is leased for
under your rental agreement or periodic tenancy
agreement
• the number of weeks in rent default.
2. You must pay any excess that applies
If you make a claim, you will need to pay any excess that
applies to your building or contents. The amount of your
excess is shown on your schedule.
Your excess will be increased by $400 for any claim that
arises from a tenant:
• leaving your buildings
• ceasing to pay rent, or
• being evicted from your buildings.
3. If you are entitled to use bond money
We will pay you the cost of the rent default and any legal
expenses. We will reduce this amount by the amount of
any bond money remaining after deducting any allowable
re-letting expenses and any other costs or expenses you
are legally entitled to, however:
• if a tribunal orders the refund of the bond money to
the tenant, on the grounds of hardship, an excess
equal to four weeks rent will apply to your claim.
38
How we settle a theft by a
tenant claim
1. If we decide to pay your theft by a tenant claim
Refer to:
• How we settle a buildings claim on pages 31–34
• How we settle a contents claim on pages 34–37.
2. You must pay any excess that applies
If you make a claim, you will need to pay any excess
that applies. The amount of your excess is shown on
your schedule.
Your excess will be increased by $400 for any claim
arising from the theft of any part of your buildings or
your contents by your tenant or their visitors.
When a claim is made for what we identify as one or more
separate incidents, you will need to pay any excesses that
apply for each separate incident we have identified.
Claim payment examples
These Claim payment examples show you how a claim
settlement may be calculated based on some practical
scenarios. Any actual claim settlement amount will
depend upon the facts of each case. For the purpose
of the scenarios you are not registered for GST.
Claim Example 1
Cover type
Building Insurance
Buildings sum insured
$250,000
Excess
$250
Loss or damage
Storm damage to your roof.
How we settle
your claim
• We arrange for a builder to
repair your roof for $4,000
• We pay the builder $3,750
• We ask you to pay the builder
the $250 excess.
39
Claim Example 2
Cover type
Building and Contents Insurance
and loss of rent
Building sum insured
$300,000
Contents sum insured
$50,000
Loss of rent sum
insured
$15,000
Excess
$250
Loss or damage
Your buildings and contents are
partially destroyed by fire.
We agree that your tenant is unable
to live in your buildings and you
suffer loss of rent.
How we settle
your claim
• We choose to pay you directly
for the damage
• We pay you $25,750 as follows
• Building repairs $15,000
• Content replacement $5,000
• Loss of rent $6,000
• Less excess $250
• Total $25,750.
Claim Example 3
Cover type
Rent default and theft by a tenant
Excess
$650 = $250 (standard) plus $400
(additional)
Loss
Tenant stops paying you rent.
How we settle
your claim
• We assess your rent default
at $5,000
• Less applicable excess $650
• We settle your claim for $4,350.
Claim Example 4
Cover type
Liability
Loss or damage
Liability to pay for damages for
personal injury to a third party
How we settle
your claim
• We pay the legal costs
of $10,000
• We pay the medical expenses
incurred by the third party
of $22,000.
40
How to resolve a complaint
or dispute
1. Talk to us first
If you have a complaint, the first thing you or your
insurance adviser should do is speak to a staff member
in the area concerned. If your complaint relates
specifically to a claim, speak with the claims officer
managing your claim.
See back cover for contact details P
If the staff member or claims officer are unable to resolve
the matter for you, you or your insurance adviser may
speak to a manager. If you are not satisfied with the
decision, you can go to step 2.
2. Seek a review
If the matter is still not resolved, the manager will refer
you or your insurance adviser to the relevant internal
dispute resolution area who will conduct a review of
your dispute.
If you are still not satisfied with the decision, you can
go to step 3.
3. Seek an external review
You are entitled to seek an external review of the
decision. The dispute resolution area will provide you
or your insurance adviser with information about the
options available to you, such as referring you to the
external dispute resolution scheme administered by
the Financial Ombudsman Service (FOS).
Further information about the complaint or dispute
resolution procedures is available by contacting us.
See back cover for contact details P
41
Financial claims scheme
You may be entitled to payment under the financial claims
scheme in the event that CGU Insurance Limited becomes
insolvent. Access to the scheme is subject to eligibility
criteria. Information about the scheme can be obtained
from the Australian Prudential Regulation Authority (APRA)
website at www.apra.gov.au and the APRA hotline on
1300 55 88 49.
Intermediary remuneration
CGU Insurance Limited pays remuneration to insurance
intermediaries when we issue, renew or vary a policy the
intermediary has arranged or referred to us. The type and
amount of remuneration varies and may include commission
and other payments. If you require more information about
remuneration we may pay your intermediary, you should ask
your intermediary.
42
Glossary
accidental loss or damage
damage to, loss or destruction
of the buildings that make up
your rental property, or your
contents when it is caused
by an unintentional act, or an
unforeseen and uncontrollable
incident.
allowable re-letting expenses
re-letting expenses as specified
in the current rental agreement
for your property.
bond money
money paid by the tenant
and held as security against
damage to the property,
outstanding rent or other costs.
Your policy operates on the
basis that your tenant has paid
bond money that equals at
least four weeks rent.
claim
a separate identifiable incident
for which the policy provides
cover.
Where multiple incidents are
submitted at the same time or
on the same claim form, they
will be treated as separate
claims for the application of any
policy excess or limitation.
deliberate or intentional act
a conscious or reckless act
done without the owners
permission.
endorsement schedule
a document that includes any
information from the existing
schedule that has not changed
or varied, and confirms any
alteration to the coverage,
terms and conditions of your
policy.
excess
the amount you pay when you
make a claim on your policy.
The amount and type of excess
that may apply to your policy is
shown on your current schedule
and in this PDS.
The amount of your excess
will be increased if you make
a claim for:
• an earthquake or tsunami
• vandalism or a malicious act
• a deliberate or intentional act
• rent default
• theft by a tenant.
Your excess and any additional
excesses will apply for what
we identify as each separate
identifiable incident.
fixtures and fittings
any household items or
household equipment that
are permanently attached
to your buildings.
flood
Flood means the covering of
normally dry land by water that
has escaped or been released
from the normal confines of:
(a) any lake, or any river, creek
or other natural watercourse,
whether or not altered or
modified; or (b) any reservoir,
canal or dam.
incident
a single occurrence or a series
of occurrences, including an
accident or series of accidents,
arising out of one event.
period of insurance
the length of time between
the start date and end date of
your policy, as listed on your
current schedule.
43
periodic tenancy agreement
applies when a tenant
continues to occupy the rental
property, after a fixed-term
rental agreement has expired,
and the rental agreement does
not provide for its continuation,
and a:
• notice to leave
• notice of intention to leave, or
• abandonment termination
notice.
has not been given by the tenant
to you, or your agent, or by you,
or your agent to the tenant.
The tenant is then treated as
being under a periodic tenancy
agreement on the same terms
which applied immediately
before the rental agreement
ended.
This does not include any term
about the agreement’s term.
pet
a domestic animal that you
keep in your rental property
or at your rental property.
premium
the total amount you pay for
your insurance that includes
applicable government taxes
such as GST, and any duties
or charges payable by you.
It is shown on your current
schedule. You can pay your
premium annually in one lump
sum, or by instalments.
rent
the amount of money paid,
or payable, by the tenant to
rent your rental property.
rent default
when a tenant fails to pay the
agreed rent and is in breach of
a written, rental agreement or
periodic tenancy agreement.
44
rental agreement
the agreement between you or
your agreement agent and the
tenant. This agreement must
be in writing and state:
• the term of the rental period
• the amount of rent payable
to you
• the amount of the bond
money that the tenant is
required to pay.
schedule
your current schedule is
a document outlining the
details of your insurance
cover. Your schedule may be
called a policy, renewal or
endorsement schedule.
special conditions
exclusions, restrictions or
extensions to cover that are
imposed on specific matters
or people.
sporting equipment
equipment designed to be
used in a leisure activity that
involves some element of
physical activity or competition,
excluding pedal cycles.
strata title
title under a strata title or similar
community title scheme where
separate parts of the scheme
building(s) have a separate
legal title. Strata title usually
applies to high rise apartments,
townhouses, villas or duplexes.
sum insured
your nominated replacement
value at today’s prices for your
buildings or contents. This will
be listed on your schedule.
Supplementary Product
Disclosure Statement (SPDS)
a separate document that
updates, corrects or adds
to the information contained
in this PDS.
tenant
the person(s) named in the
rental agreement or periodic
tenancy agreement and
including that person’s partner,
children, pets, and any other
person(s) permanently living at
your rental property.
Any person(s) including that
person’s partner, children, pets
and any other person(s) living
at your rental property under a
rental arrangement that is not
a rental agreement or periodic
tenancy agreement.
terrorism
any act which may involve
the use of, or threat of, force,
violence or biological or
chemical warfare, or nuclear
pollution or contamination or
explosion where the purpose
of the act is to further a political,
religious, ideological aim, or
to intimidate or influence a
government or any section
of the public.
total loss
when we decide that it is
uneconomical to repair
or rebuild you buildings
or contents.
unoccupied rental property
a rental property that no-one
has lived in for 60 consecutive
days or more.
us, we and our
refers to:
CGU Insurance Limited
ABN 27 004 478 371
vandalism or a malicious act
a wrongful act motivated by
malice, vindictiveness or spite
with the intention of damaging
the property.
you and your
the person or people named
as the insured on your current
schedule.
If more than one person is
named as the insured, we will
treat a statement, act, omission
or claim by any one of these
people as a statement, act,
omission or claim by them all.
If you are making a claim, ‘you’
also includes your domestic
partner, you or your partner’s
unmarried children, and you
or your partner’s parents who
normally live with you.
your buildings
buildings that you own or
are legally responsible for.
your contents
contents that you own or
are legally responsible for.
your rental property
where your buildings or contents
are located. This includes any
land or other area that touches
your rental property and for
which any statutory authority
has made you responsible, but it
does not include the nature strip
outside your rental property.
Your rental property is located
at the situation shown on your
current schedule.
your policy
the contract between you and
us which provides you with
insurance cover in exchange
for a premium. Your policy is
made up of two documents:
• this Product Disclosure
Statement and policy
booklet (PDS) and any
supplementary PDS, plus
• your current schedule.
45
Index
A
D
accidental damage cover
6, 17
debris removal accidental loss
or damage demolition costs 6, 17
additional cover 10, 17
allowable re-letting
expenses 38, 43
answering questions 21
applying for insurance 27
B
bond money 2, 35, 38
building claims
settlement 31–34
buildings cover 3, 4, 6–9,
10–12
bushfire, 7
C
cancelling your policy 28
changing your policy 28
claims
how to make settling them 30
31–41
10
deliberate act 8, 20
10
dispute resolution 41
duty of disclosure 21–22
E
electric motors 6
excess
accidental damage
cover additional cover buildings contents defined loss of rent rent default theft by a tenant when payable 6
10
31–33
35
43
37
38
39
2
exclusions to cover 17–20
explosion 7
F
fees for rebuilding 11
contents cover
described4–6
maximum amounts
payable5
claims settlement 31–41
Financial Ombudsman
Service (FOS) 41
cooling-off period 25
G
complaints procedure 41
general exclusions 11
General Insurance Code
of Practice cover when rental
property sold cyclone 8
fire flood Glossary grassfire guarantee 46
7
7, 8, 9, 43
19–20
25
43–45
7
25
I
S
incident cover 6–10, 19
instalment premium 30
Insurance Contracts
Act 198421
intentional act 8, 20
settling a claim
buildings31–34
contents34–37
loss of rent
37
rent default
38
sole tenant death L
13–14, 37
special contents
5
landslide or subsidence
7, 9, 17, 19
storm8
liability cover
exclusions18–19
general12–13
when building total loss 34
sum insured
liquid damage
7, 8
loss of rent
13–14
M
4, 5, 10, 11, 13
T
tenant hardship
8
mortgagee discharge
costs11
14, 37
tenants
7, 13, 14–15, 17, 38, 39
terrorism
malicious act
by tenant
19, 45
theft or attempted theft
9, 39
total loss of building
11, 34
tsunami20
O
optional cover
Strata Title Mortgagee
Protection16
12–16, 17
our commitment
to you
25–27
periodic tenancy
agreement13–14
personal information
unoccupied buildings 22, 45
V
P
Police, reporting
of incidents
U
26
9, 23
premiums29
vandalism by tenant
variation of your policy water damage
wind loss or damage
privacy26
R
Y
rebuilding fees
11
renewing insurance
27
28
W
workers’ compensation
rainwater8
8, 35
your responsibilities
to us
9, 17
8
16
21–24
rent default and theft
by a tenant 14–15, 38, 39
rental agreement
13–15, 37, 38
responsibilities to us 21–24
47
Notes
Notes
Notes
The insurer – Workers' Compensation
If your home is in Western Australia, Tasmania or the
Northern Territory, the insurer providing the Workers'
Compensation optional cover is Insurance Australia
Limited trading as CGU Workers Compensation,
ABN 11 000 016 722.
CONTACT DETAILS
Enquiries
Claims
13 24 81
13 24 80
Mailing address
GPO Box 9902 in your capital city
Sydney
388 George Street
Sydney NSW 2000
Perth
46 Colin Street
West Perth WA 6005
Melbourne
181 William Street
Melbourne VIC 3000
Adelaide
80 Flinders Street
Adelaide SA 5000
Brisbane
189 Grey Street
South Bank QLD 4101
CGU.COM.AU
Preparation date: 12/03/2014
PID0300_F REV4 9/14
Insurer
CGU Insurance Limited
ABN 27 004 478 371
AFSL 238291
CONTACT DETAILS
Enquiries
Claims
13 24 81
13 24 80
Mailing address
GPO Box 9902 in your capital city
Sydney
388 George Street
Sydney NSW 2000
Perth
46 Colin Street
West Perth WA 6005
Melbourne
181 William Street
Melbourne VIC 3000
Adelaide
80 Flinders Street
Adelaide SA 5000
Brisbane
189 Grey Street
South Bank QLD 4101
CGU.COM.AU
CV437_F REV3 10/14
Insurer
CGU Insurance Limited
ABN 27 004 478 371
AFSL 238291